KUALA LUMPUR, Oct 20 (Bernama) -- Morocco is poised to have its first fully-fledged Islamic banking institution by October this year and is the only North African country rated investment grade seeking to tap the US$1.8 trillion industry. In a statement today, the Finance Accreditation Agency (FAA) said it had the opportunity to work closely with the Moroccan government to introduce a sustainable framework, which includes building a pipeline of quality talent for the Islamic finance industry.

"Strong demand for Islamic finance products has prompted the Moroccan government to introduce new banking laws with provisions for establishing Shariah compliant banks," it said.

On the sidelines of the International Participative Finance Forum Casablanca, which was attended by more than 400 high-level bankers and regulators from across the African region, FAA Chief Executive Officer Dr Amat Taap Manshor said it is important to build a strong talent pipeline to support Morocco's future Islamic finance industry.

Malaysia and Morocco are linked in Islamic culture and history. The earliest linkage between our nations can probably be traced back to Ibn-Battuta landing in Malacca during his voyage in 1325. In modern times, our countries enjoy well-established diplomatic and economic relations, and it is my hope that this business mission will pave the way for stronger ties between our two countries. In particular, I hope it will foster closer collaboration in Islamic finance, which is also known as participative finance here in Morocco.

Morocco, located at the confluence between the Atlantic Ocean and the Mediterranean Sea, is well-placed as a gateway for trade and investment not just in Africa, but also in Europe and the Middle East. Likewise, Malaysia, being at the heart of Asean, is strategically located to access markets in the Asia Pacific — an advantage that Malaysia has leveraged upon to develop itself as a well-developed Islamic finance hub over the last three decades. There is no doubt that greater connectivity between our Islamic financial centres would enhance both our countries’ capacity and capability to deliver services, products and value beyond the reach of each country.